I. Productivity Growth A. Investment-Specific ...

Professor Valerie RameySpring 2002 UCSD

Economics 210E

Advanced Macroeconomics - Revised Syllabus

The followingreading list includesmany papers on each topic. I expect you to read many,but not all of the papers. This reading list is meant to be a useful bibliographicreferenceso that you may concentrate on topics that interest you. I will put many of the unpublishedmanuscripts on reserve for you. The other papers can be obtained fromjournals. Articlesfrom leadingjournals that are at least 5 years old can be obtained ITomJSTOR. If youcannot find a paper, feel free to borrow my copy.

I. Productivity Growth

A. Investment-SpecificTechnologicalChange

Hulten, Charles R. "Growth Accounting When TechnicalChange is Embodied in Capital,"AER September 1992.

Jeremy Greenwood, Zvi Hercowitz and Per Krusell, "Long-Run Implications ofInvestment-SpecificTechnologicalChange," AER June 1997.

Andreas Hornstein and Per Krusell, "Can Technology Improvements Cause ProductivitySlowdowns?" NBER Macro Annual, 1996.

Jeremy Greenwood and Mehmet Yorukoglu, "1974," Carnegie-Rochester ConferenceSeries on Public Policy June 1997.

Martin Neil Baily, Charles Hulten and Campbell,"Productivity Dynamics inManufacturing Plants," Brooldngs Papers in Economic Activity: Microeconomics (1992).

B. The Role of Information Technology in Productivity Growth

Dale Jorgenson, "Information Technology and the U.S. Economy," AER, March 2001, 1-32.

Jeremy Greenwood and Boyan Jovanovic, "The Information-TechnologyRevolution andthe Stock Market," AER May 1999.

Bart Hobijn and Boyan Jovanovic, "The Information Technology Revolution and theStock Market: Evidence," AER December 2001, 1203-1220.

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Kevin Stiroh, "Information Technology and the U.S. Productivity Revival: What Do theIndustry Data Say?" forthcomingAmerican Economic Review.

II. Propagation

Timothy Cogley and James Nason, "Output Dynamics in Real Business CycleModels,"AER June 1995.

Julio Rotemberg and MichaelWoodford, "Real Business CycleModels and theForecastable Movements in Output, Hours and Consumption,"AER March 1996.

Greenwood, Hercowitz and Huffman, "Investment, CapacityUtilization, and the RealBusiness Cycle," AER June 1988.

Craig Burnside and Martin Eichenbaum,"Factor-Hoarding and the Propagation ofBusiness-Cycle Shocks," AER (December 1996): 1154-1174.

Wouter den Haan, Garey Ramey and Joel Watson, "Job Destruction and the Propagationof Shocks," AER 90 (June 2000): 482-498.

Yongsung Chang, Joao Gomes and Frank Schorfheide, "Leaming-by-Doing as aPropagation Mechanism," forthcomingAER.

ID. Technology & Preference Shocks

John Cochrane, "Shocks," Carnegie-Rochester Series on Public Policy, Fall 1994 andNBER working paper 4698.

Jordi Gali, "Technology, Employment, and the Business Cycle: Do Technology ShocksExplain Aggregate Fluctuations?"AER March 1999.

Basu, Kimball and Fernald, "Are Technology Improvements Contractionary?" July 1999manuscript.

John Shea, "What do Technology Shocks Do?" NBERMacroeconomics Annual 1998.

Neville Francis and Valerie Ramey, "Is the Technology-DrivenReal Business CycleHypothesis Dead? Shocks and Aggregate Fluctuations Revisited," NBER working paper8726, January 2002.

Matthew Shapiro and Mark Watson, "Sources of Business CycleFluctuations," NBERMacroeconomics Annual, 1988, pp. 111-148.

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Robert Hall, "Macroeconomic Fluctuations and the Allocation of Time," Journal of LaborEconomics 15(January 1991): S223-S250.

Marianne Baxter and Robert King, "Productive Externalities and Business cycles,"November 1991,Federal Reserve Bank of MinneapolisDiscussion Paper 53.

Fleischman, Charles A., "The Causes of Business Cyclesand the Cyclicalityof RealWages," Board of Governors of Federal Reserve System (2000).

IV. Monetary Policy

A. Empirical

Christopher Sims, "Interpreting the Macroeconomic Time Series Facts: The Effects ofMonetary Policy," European Economic Review, 36 (1992).

Ben Bernanke and Ilian Mihov, "Measuring Monetary Policy," QJE August 1998.

Glenn Rudebusch, "Do Measures of Monetary Policy in a VAR Make Sense?"International Economic Review, Nov. 1998.

Lawrence Christiano, Martin Eichenbaum, and CharlesEvans, "Monetary Policy Shocks:What Have We Learned and To What End?" In Handbook of Macroeconomics, Vol. 1A,J.B. Taylor and Michael Woodford (eds.). Amsterdam: North-Holland, 1999. pp.65-148.

Michael Hanson, "On the Identification of Monetary Policy: The 'Price Puzzle'Reconsidered," 1998 manuscript. .

Marvin Barth and Valerie Ramey, "The Cost Channelof Monetary Transmission,"NBERMacroeconomics Annual, 2001.

B. Taylor Rules

John Taylor, "Discretion versus PolicyRules in Practice," Carnegie-RochesterConference Series on Public Policy, December 1993.

Richard Clarida, Jordi Gall, and Mark Gertler, "Monetary Policy Rules andMacroeconomic Stability: Evidence and Some Theory," Quarterly Journal of EconomicsFebruary 2000.

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Economic Review September 2001.

C. The New Phillips Curve and Dynamic Models with Nominal Rigidities

Jeff Fuhrer and George Moore, "Inflation Persistence," QJE 110 (February 1995): 127-160.

Arturo Estrella and JefUeyFuhrer, "DynamicInconsistencies: Counterfactual Implicationsof a Class of Rational Expectations Models," forthcomingAER.

Jordi GaIiand Mark Gertler, "InflationDynamics: A Structural Econometric Analysis,"Journal of Monetary Economics, 44 (October 1999): 195-222.

Jordi GaIi,Mark Gertler, and 1.David L6pez-Salido, "European InflationDynamics,"European Economic Review 45 (2001): 1237-1270.

Christiano, Lawrence, Martin Eichenbaum, and Charles Evans, "Nominal Rigidities andthe DynamicEffects of a Shock to Monetary Policy" May 2001 working paper(http://www.faculty.econ.nwu.edu/faculty/eichenbaum/research/papermay16-2001.pdt)

Michael Dotsey and Robert G. King, "Pricing, Production and Persistence," NBERworking paper 8407, August 2001.

Chari, V. v., Patrick 1. Kehoe, and Ellen R. McGrattan, "Sticky Price Models of theBusiness Cycle: Can the Contract Multiplier Solve the Persistence Problem," Econo-metrica, vol. 68 (September 2000), pp. 1151-79.

v. Institutions and Growth

Douglass North and Robert Thomas. TheRise of the Western World: A New EconomicHistory. Cambridge: CambridgeUniversityPress, 1973.

Paulo Mauro, "Corruption and Growth," QuarterlyJournal of Economics 110 (August1995): 681-712.

Robert E. Hall and Charles Jones, "Why Do Some Countries Produce So Much MoreOutput Per Worker Than Others?" QuarterlyJournal of Economics, 114 (February1999): 83-116.

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Daron Acemoglu, SimonJohnson, and James A. Robinson, "The Colonial Origins ofComparative Development: An EmpiricalInvestigation,"American Economic Review 91(December 2001): 1369-1401.

Daron Acemoglu, SimonJohnson, James A. Robinson, and Yunyong Thaicharoen,"Institutional Causes, Macroeconomic Symptoms:Volatility Crises and Growth," April19,2002 - preliminaryand incompletepresented at Carnegie-Rochester.

WilliamEasterly and Ross Levine, "Tropics, Germs and Crops: How EndowmentsInfluence Economic Development," March 2002 paper presented at Carnegie-Rochester.

Jared Diamond. Guns, Germs and Steel: The Fates of Human Societies. New York: W.W. Norton, 1997.

David Dollar and Aart Kraay, "Institutions, Trade and Growth," April 2002 paperpresented at Carnegie-Rochester.

Edward Glaeser, Jose Scheinkmanand Andrei Shleifer,"The Injustice ofInequality,"March 2002 paper presented at Carnegie-Rochester.

VI. The Decline in Volatility

McConnell, M.M., Perez-Quiros, G., "Output Fluctuations in the United States: What hasChanged Since the Early 1980s?"American Economic Review, 90(5), December 2000,1464-76.

Kim, C. and Nelson, C. R., "Has the US. Economy Become More Stable? A BayesianApproach Based on a Markov-SwitchingModel of the Business Cycle," The Review ofEconomics and Statistics, 81(4), November 1999, 608 - 616.

Ahmed, S., Levin, A. and Wilson, B. A., "RecentUS. Macroeconomic Stability:GoodLuck, Good Policies, or Good Practices?" The Board of Governors of the Federal ReserveSystem, January 2001.

Kahn, J. A., McConnell, M. M. and Perez-Quiros, G., "Inventories and the InformationRevolution: Implicationsfor Output Volatility,"Federal Reserve Bank of New York,December 2000.

Kahn, J .A., McConnell, M.M. and Perez-Quiros, G., "The Reduced Volatility of the US.Economy: Policy or Progress?" Federal Reserve Bank of New York, December 2000.

OlivierBlanchard and John Simon, "The Long and Large Decline in U.S. OutputVolatility,"Brookings Papers on Economic Activity, 1:2001, pp.135-174.

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2002 working paper.

vn. Habit persistence

Christopher Carroll, Jody Overland, andDavid Weil, "Saving and Growth with HabitFormation," American Economic Review 90 (June2000): 341-355.

Jeffrey Fuhrer, "Habit Formation in ConsumptionandIts Implications for Monetary PolicyModels," American Economic Review 90 (June2000): 367-390.

Karen Dynan, "Habit Formation in Consumer Preferences: Evidence from Panel Data,"American Economic Review 90 (June 2000): 391-406.

Jermann, Urban 1., "Asset Pricing in Production Economies," Journal of MonetaryEconomics 41 (April 1998): 257-276.

Boldrin, Michele, Lawrence 1. Christiano and Jonas D.M. Fisher, "Habit Persistence,Asset Returns and the Business Cycle," American Economic Review 91 (March2001):149-166.

VID. Recent work on Investment and Q-Theory

Joao Gomes, "FinancingInvestment," American Economic Review 91 (December 2001):1263-1285.

Russell Cooper and Joao Ejarque, "Exhuming Q: Market Power vs. Capital MarketImperfections," NBER working paper 8182, March 2001.

Andrew Abel and Janice Eberly, "Q Theory Without Adjustment Costs & Cash FlowEffects Without FinancingConstraints," 0ctober 2001 working paper.

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Robert Hall, "The Stock Market and Capital Accumulation,"American Economic Review91 (December 2001): 1185-1202.

Marcelo Veracierto, "Plant Level IrreverJible Investment and EquilibriumBusinessCycles," forthcomingAmerican Economic Review .

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